Are there any restrictions on the type of investments that can be made for tax savings?
Curious about tax savings
Yes, there are certain restrictions on the type of investments that can be made for tax savings in India. Some of the popular taxsaving instruments that qualify for tax deductions under Section 80C of the Income Tax Act include Public Provident Fund (PPF), National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), National Pension System (NPS), taxsaving fixed deposits (FDs), and senior citizen savings schemes, among others. However, it is important to note that not all investments qualify for tax savings. For instance, investments made in cryptocurrencies, gold or silver bullion, or real estate do not qualify for tax savings under Section 80C. Additionally, investments made in some instruments may have a lockin period or other restrictions. It is advisable to consult with a financial expert or tax consultant to understand the specific restrictions and implications of different investment options for tax savings.